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Cutbacks at Braviken Paper mill

Braviken Paper mill. Photo: Holmen
Braviken Paper mill. Photo: Holmen
Published by
Simon Matthis - 17 Nov 2011

Holmen Paper is opening union negotiations to reduce the workforce at Braviken Paper Mill, outside Norrköping. The reasons for the cutbacks are continued poor profitability and increasing competition.

Employees were informed on Wednesday about the coming job cuts, which will affect around 80 people.

"Holmen Paper's profitability is already low and we are continuing to experience tough market conditions," explains Henrik Sjölund, head of Holmen Paper. "We are therefore stepping up work on cutting our fixed costs. Unfortunately this will mean losing some employees."

In addition to job cuts at Braviken Paper Mill, Holmen Paper is also overhauling its central functions such as marketing and sales. Alongside this, the company is switching to more refined products.

"Holmen Paper is in the middle of restructuring the Swedish units so that they produce more refined and thus more profitable products, and that strategy will remain in place," states Henrik Sjölund. "We are exploiting the competitive advantages that our access to virgin fibre brings and increasingly becoming a specialist paper company."